Brooklyn medical buildings sell for $40M

Three buildings are all located in Bay Ridge

Clockwise from left: 9020 Fifth Avenue, 7115-21 13th Avenue and 7601 Fourth Avenue in Bay Ridge (Google Maps)
Clockwise from left: 9020 Fifth Avenue, 7115-21 13th Avenue and 7601 Fourth Avenue in Bay Ridge (Google Maps)

A set of three medical buildings in Bay Ridge recently traded hands for more than $40 million, in what was reportedly a 1031 exchange transaction.

The three buildings, totaling about 61,400 square feet, are located at 7601 Fourth Avenue, 9020 Fifth Avenue, and 7115-21 13th Avenue and are fully occupied by medical tenants such as ProHealth, Quest Diagnostics, and ENT & Allergy Associates, according to marketing materials reviewed by The Real Deal.

The buyer was William Lerner, president of Imperial Parking, a parking garage chain in the city that operates as iPark. Lerner, through his shell entities, recently sold three garages in Manhattan to Centerpark for $34.7 million, according to PincusCo. Lerner couldn’t be reached for comment.

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According to sources familiar with the deal, Lerner’s transaction was a 1031 exchange. Real estate investors with capital gains have been eager to swap their properties before the year’s end since President-elect Joe Biden, as a presidential candidate, proposed eliminating 1031 exchanges — a popular tax deferral benefit — for investors with annual incomes greater than $400,000.

Lerner was represented by Kassin Sabbagh Realty’s Bunny Escava and Isaac Setton in the transaction. Escava declined to comment.

The seller was Dr. Shahrokh Abiri, a radiologist affiliated with ProHealth, and he was represented by the Rochlin Organization and Scout Healthcare Advisors. Rochlin’s principal Adam Rochlin declined to comment. Abiri couldn’t be reached for comment.

Unlike the hospitality or retail real estate sectors, medical and life sciences properties have been among those least affected by the pandemic-driven downturn. Big REITs, including Blackstone and Alexandria Real Estate Equities, have continued to pour money into the sector during the pandemic.